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This website is for Wholesale Clients (as defined in the Corporations Act and applicable regulations) only and provides information on our products, strategies and services. Please remember capital is at risk and past performance is not a guide to the future.

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Multi-Asset Credit

A dynamic strategy that offers yield, flexibility and improved diversity.

Strategy focus Multi-Asset Credit

Why Multi-Asset Credit?

We believe a Multi-Asset Credit (MAC) strategy can offer higher yield while controlling risk by diversifying across different credit segments. A MAC approach can also have low interest rate risk through the use of loans and high yield bonds with low duration. In addition, with volatility within financial markets becoming ever more common, we believe a flexible and reactive investment strategy will be far better placed to navigate through different market conditions.

The Investec Multi-Asset Credit Strategy takes an unconstrained approach to investing, targeting the most efficient allocation of capital across the global credit universe.

A flexible, active credit strategy

Our MAC Strategy has its core focus in each of the significant developed global credit markets (Investment Grade, High Yield, and Leveraged Loans) including the specialist sub-sets within these markets. Alongside this core focus, we can opportunistically allocate to Emerging Market Credit and Structured Credit, should we see sufficient compelling value. Across these markets we seek to target the most efficient use of capital using security selection, beta management and asset allocation as sources of alpha. This dynamic portfolio will evolve and adapt to market conditions, value, risk premia and liquidity.

Unconstrained bottom-up investing

Given our unconstrained approach to investing, the MAC portfolio consists of our best ideas across the credit spectrum, with complete benchmark independence in asset selection. We fundamentally believe that constructing portfolios bottom-up, in a risk-controlled manner, ultimately leads to a better investment result.

*These internal parameters are subject to change not necessarily with prior notification.

Portfolio benefits:

  • Bigger investable universe from which to choose, allowing for a wider opportunity set.
  • Credit asset class diversification leads to a better spread of risk and also less propensity for unproductive index biased investing.
  • Pricing inefficiency caused by individual asset class flows can create over or under valuations between asset classes.
  • Similar risk can often be mispriced between markets due to illiquidity premiums or structural complexity.
  • Credit asset class complexities are simplified through a single MAC solution where the manager deals with all implementation, structural and liquidity considerations.
  • This approach led to dynamic asset allocation across the credit markets, regionally and by asset class, which was a key driver of performance.
  • The performance through the year also illustrated the benefit of diversification across different sources of return, with robust performance through a variety of significant events.

Key benefits of the Investec Multi-Asset Credit Strategy:

  • A well-diversified portfolio, addressing investors’ need for risk-controlled income in today’s low-yield environment.
  • Targeting a total return target of cash in excess of 4% p.a. over a full credit cycle (gross of fees)**
  • Unfettered by region or benchmark. Region and benchmark agnostic.
  • Managed by a single, globally integrated team operating as a coherent unit.
  • Integrated with a well-regarded Multi-Asset and Emerging Market Fixed Income team.
  • Dynamic and disciplined screening identifies a wide range of opportunities enabling us to construct a ‘best ideas’ portfolio.
  • Careful security selection and rigorous management process built around our bespoke ‘Compelling Forces™' investment framework.


Jeff Boswell

Co-Portfolio Manager,
Multi-Asset Credit


Garland Hansmann

Co-Portfolio Manager,
Multi-Asset Credit

Tim Schwarz

Co-Portfolio Manager,
Multi-Asset Credit

Strategy Guide

An unconstrained investment approach with a disciplined process to building well-diversified portfolios.

Read more

Thought Paper
Investing in Multi Asset Credit Strategies

In this paper we discuss the depth and breadth of the MAC opportunity set, as well as how such an unconstrained approach is implemented in practise – in a low-growth, low-return world.

Read more

Technical Paper
Meeting the challenge of uncertain interest rates

This technical paper explains the tools that MAC managers have at their disposal to manage their portfolios through a challenging interest rate environment.

Read more

General risks:

The value of investments, and any income generated from them, can fall as well as rise. Where charges are taken from capital, this may constrain future growth.

Past performance is not a reliable indicator of future results. If any currency differs from the investor's home currency, returns may increase or decrease as a result of currency fluctuations.

Investment objectives and performance targets may not necessarily be achieved, losses may be made.


Specific risks:

Default: There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss.  Derivatives: The use of derivatives may increase overall risk by magnifying the effect of both gains and losses leading to large changes in value and potentially large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss.  Interest rate: The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise.  Liquidity: There may be insufficient buyers or sellers of particular investments giving rise to delays in trading and being able to make settlements, and/or large fluctuations in value. This may lead to larger financial losses than might be anticipated.  Loans: The specific collateral used to secure a loan may decline in value or become illiquid, which would adversely affect the loan’s value. Many loans are not actively traded, which may impair the ability of the Portfolio to realise full value in the event of the need to liquidate such assets.